Chinese electric vehicle maker Zeekr has set its initial public offering price at $21 a share, marking the top end of its expected range. This move comes as the company prepares to sell 21 million American depository shares in order to raise a substantial $441 million. The IPO is scheduled to commence trading on the New York Stock Exchange under the ticker symbol ZK. This decision to price the offering at the high end of the range reflects confidence in the company’s potential for growth and success in the electric vehicle market.
Zeekr, which is supported by Chinese automotive giant Geely, is positioning itself as a strong competitor to Tesla in the electric vehicle space. The company has already surpassed Tesla in car sales in the Zhejiang province of China, where its parent company is headquartered. Zeekr’s CEO, Andy An, has expressed optimism about narrowing the sales gap with Tesla even further. With plans to expand into Europe and Latin America, Zeekr is setting its sights on establishing a global presence and challenging Tesla’s dominance in the industry.
In its Securities and Exchange Commission filing, Zeekr outlined its ambitious growth strategy, emphasizing a focus on developing next-generation premium battery electric vehicles (BEVs) and innovative technology solutions. The company reported impressive revenue of $7.28 billion in 2023, coupled with a loss of $1.16 billion. Despite the financial loss, Zeekr remains confident in its ability to drive growth and capture market share through strategic investments in advanced electric vehicle technologies.
The proceeds from the IPO will be crucial in fueling Zeekr’s expansion plans and research initiatives. The company intends to allocate the funds towards developing more sophisticated battery electric vehicle technologies, enhancing its marketing efforts, expanding its charging infrastructure, and addressing general corporate needs. By leveraging the capital raised through the offering, Zeekr aims to strengthen its competitive position in the electric vehicle market and accelerate its growth trajectory.
As Zeekr prepares to make its debut on the New York Stock Exchange, the company’s IPO pricing and growth prospects are generating significant interest and anticipation. With a strong backing from Geely and a strategic focus on innovation and market expansion, Zeekr is poised to emerge as a formidable player in the electric vehicle industry. As it forges ahead with its ambitious plans for growth and technological advancement, Zeekr is setting the stage for a compelling rivalry with industry leader Tesla.